analysis of the global brand adidas
TRANSCRIPT
Impossible is Nothing
Analysis of the
global brand
Adidas
The objective of the Presentation
To identify a global brand and critically analyze it with contrast to
the related theories and frameworks
The structure of the Presentation
Introduction to the brand
Situational Analysis
STP Strategy used by Adidas
International Marketing mix
Global issues
Recommendations
Introduction to the brand
Adidas is the biggest sportswear manufacturer in Europe and one of
the biggest in the world.
Owns a global market share of 35%
The company that started in 1924 is one of the favorites for many
athletes.
Adidas has also won the trust of many customers as a strong and
reliable brand.
Their core products are Footwear, Clothing, and Accessories
History of the brand
Adidas began when Adolf Dassler began making
shoes in his mothers wash kitchen in Germany in
1924
The first name for Adidas was Gebrüder Dassler
Schuhfabrik (Dassler brother shoe factory)
‘Adi Dassler adidas Sportschuhfabrik’ was
registered on 18th August 1949 and set to work with 47 employees in the small town of
Herzogenaurach.
Vision and Mission Vision
“To be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology"
Mission
The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position.
We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to market.
We are consumer focused and therefore we continuously improve the quality, look, feel, and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value.
We are a global organization that is socially and environmentally responsible, that embraces creativity and diversity, and is financially rewarding for our employees and shareholders.
We are dedicated to consistently delivering outstanding financial results.
Vision and Mission Vision
“To be the most respected and successful enterprise, delighting customers with a wide range of products and solutions in the automobile industry with the best people and the best technology"
Mission
The adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position.
We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to market.
We are consumer focused and therefore we continuously improve the quality, look, feel, and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value.
We are a global organization that is socially and environmentally responsible, that embraces creativity and diversity, and is financially rewarding for our employees and shareholders.
We are dedicated to consistently delivering outstanding financial results.
Corporate Mission Strives to be the leader in sports gear and apparel
Improving operations
Core Values
Performance
Passion
Integrity
Diversity
Situational Analysis
Situational Analysis
PESTEL Analysis
SWOT Analysis
Level of Internationalization
Market demand
Porter’s five forces
PESTEL Analysis POLITICAL
Issues such as their employees’ health and safety
ECONOMICAL
The outsourcing done to Asian countries
SOCIAL
Targeting mainly the European countries
TECHNOLOGICAL
Using quality information systems and R&D in sportswear
ENVIRONMENTAL
matters such as animal rights
LEGAL
Adhering to the advertising standards and the sales and supply act
Labor laws
SWOT Analysis
STRENGTHS
Long heritage and big brand value
Supplier for major sports events
Diversified product range
Strong and innovative marketing
Has a workforce of over 45,000 employees
SWOT Analysis
WEAKNESSES
The products costly due to innovative technology or production method
Stiff competition and similar big brands means customers have high
brand switching
SWOT Analysis
OPPURTUNITIES
Adidas generates close to 60 new foot-friendly designs each year.
The company can venture into making more stylish designs and cuts
Tie-up with emerging sports teams/clubs/players internationally
Brand building by setting up sports academies
SWOT Analysis
THREATS
Other brands offer more styles and varieties, thus more competition
Threat from other competitive brand who produce sports equipment
and accessories at a lesser cost
Pirated/fake imitations affect brand image
Level of Internationalization
Market Demands
Global market share of 35%
Product line is widely ranged
Porter’s 5 forces
DEGREE OF RIVALRY
The rivalry among existing competitors is pretty high in the sports and
footwear industry as compared to other similar industries.
THREAT OF SUBSTITUTES
The substitutes of Adidas products such as NIKE, PUMA etc.
Switching cost is low there is a higher tendency to lose its customers.
Porter’s 5 forces
BARGAINING POWER OF BUYERS
Bargaining power of Buyers of Adidas products tends to be high. One of
the reasons for this is that the buyers’ concentration is high, that means
they buy large volumes.
BARGAINING POWER OF SUPPLIERS
The suppliers for the Adidas products are available in plenty and so the
bargaining powers of suppliers are low.
BARRIERS TO ENTRY
But such an established brand like ADIDAS will not be affected much.
The entry barriers to the sportswear market are comparatively high.
STP Strategy
STP Strategy
SEGMENTATION
Young men, women and children who have passion for fitness and
sports
STP Strategy
TARGETING
Mostly youth between ages 13 – 30
The consumer is from upper middle and upper class
The consumer is working & love sports
The Consumer is fashionable and stylish
STP Strategy
POSITIONING
The shoes are comfortable as compared to any other in the segment
The apparels are stylish & designed to suit the consumer need
The eye gear and the perfumes are serving the niche segment
International
Marketing mix
Products
Caters for different needs and wants of consumer – (e.g.:
Sportswear and fashionable items.)
Uphold its brand by constantly upgrading and improving products’
innovative features and quality to satisfy its customers.
Adidas has established itself as a strong brand for sports apparels.
Price
Adidas is a shopping product.
Able to penetrate the market as it is cheaper than its competitors,
which is penetration strategy.
Uses market skimming for some of the other products offered in the
product mix (e.g.: white T-mac 4 shoes is being charged at a higher
price than the other color of the same version).
Place
Distributing some of the Adidas products to the various sporting
outlets
Adidas outlets all over the world.
Online purchasing through the internet.
Promotion
Promotion objective: Become the NO.1 sporting brand in the world
PROMOTION MIX
Advertising commonly through the mass media.
Through the use of the internet.
Point of Sale.
‘Impossible is Nothing’ campaign by using various celebrities and sports
personnel as brand ambassadors
Global issues faced
by Adidas
Europe
Slow Growth
-Due to rising costs of resources
China
Big Boom
-Due to increasing popularity of sports
Criticized and allegations of sweatshop labor usage
Criticized for productions done from animal skin
Recommendations
Short Term
Identify market dynamics and change accordingly
Keep up with endorsements and Sponsorships
Long Term
Increase R & D
Advance further in Technologies
Keep supporting diversity
Target more into women’s wear
Thank you